Merck has bolstered its cardiovascular pipeline with a deal to buy NovaCardia for $350 million in cash. For Merck, the acquisition marks another step down its five-year plan to restructure the company. Buying up new therapies in development is a key part of that effort, and the competition for acquisitions has been steadily driving up valuations in the biotech world. NovaCardia has a drug--KW-3902--in late-stage studies for congestive heart failure.
"This acquisition continues to deliver on our strategy of targeted acquisitions in areas of unmet medical need in the therapeutic areas of strategic importance for Merck, such as cardiovascular diseases," said Richard Kender, vice president of business development and corporate licensing at Merck.
- check out Merck's announcement
- here's the AP report on the buyout
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